GlobalFoundries Recognized on USA Today’s “America’s Climate Leaders 2024” List May 30, 2024 MALTA, N.Y., May 30, 2024 — GlobalFoundries (Nasdaq: GFS) (GF) has been named to USA Today’s “America’s Climate Leaders 2024” list. GF’s inclusion on the list, announced today and viewable here, is the latest recognition of the company’s longstanding commitment to sustainability and corporate responsibility. “Our team works every day to find new efficiencies and innovate new ways to minimize our impact on the environment. It’s fundamental to who we are as a company,” said Brian Raley, director of sustainability at GF. “We are proud to have our efforts recognized by USA Today and to be included on its list of ‘America’s Climate Leaders 2024.’” The “America’s Climate Leaders 2024” list is based on independent research and analysis of submitted and publicly available information, including data from the Carbon Disclosure Project and independent reports. The final list recognizes 450 companies across multiple industries. Last month, GF announced it was furthering its commitment to sustainable operations and fighting climate change with new long-term goals to achieve net-zero greenhouse gas emissions and 100% carbon-neutral power by 2050. Aligned with Paris Agreement goals, GF’s new goals build upon the company’s Journey to Zero Carbon pledge in 2021 to reduce its greenhouse gas emissions by 25% from 2020 to 2030, even as the company continues to expand its global manufacturing capacity. GF is on track to meet this 25% reduction goal by 2030. Other recent recognitions of GF’s sustainability and corporate responsibility efforts include being named to Morningstar Sustainalytics’ “2024 Top-Rated ESG Companies,” maintaining a “Prime” corporate ESG performance rating in 2023 from ISS and being named to Newsweek’s 2023 and 2024 lists of “America’s Most Responsible Companies.” Learn more about sustainability and corporate responsibility at GF and see a full list of the company’s sustainability awards and recognitions at: https://gf.com/about-us/corporate-responsibility About GF GlobalFoundries (GF) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development, and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com. ©GlobalFoundries Inc., GF, GlobalFoundries, the GF logos and other GF marks are trademarks of GlobalFoundries Inc. or its subsidiaries. All other trademarks are the property of their respective owners. Forward-looking Information This news release may contain forward-looking statements, which involve risks and uncertainties. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. GF undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law. Media Contact: GlobalFoundriesMichael Mullaney[email protected]
GlobalFoundries Announces Pricing of $950 Million Secondary Offering of Ordinary Shares, Including Concurrent $200 Million Share Repurchase May 22, 2024 MALTA, NY, May 22, 2024 – GlobalFoundries Inc. (“GlobalFoundries” or “GF”) (Nasdaq: GFS), today announced the pricing of a secondary public offering of $950 million of its ordinary shares at a price to the public of $50.75 per share (including a $200 million share repurchase, as described below). All of the shares in the offering are being offered by Mubadala Technology Investment Company (the “Selling Shareholder”). The Selling Shareholder is a wholly owned subsidiary of Mubadala Investment Company PJSC (which, together with its affiliates, is GlobalFoundries’ largest shareholder). The Selling Shareholder has also granted the underwriters a 30-day option to purchase up to an additional $112.5 million of GlobalFoundries’ ordinary shares (equal to 15% of the initial ordinary shares being sold to the public) at the public offering price minus underwriting discounts and commissions. The offering is expected to close on May 28, 2024, subject to customary closing conditions. GlobalFoundries is not selling any ordinary shares in the offering and will not receive any proceeds from the sale of the shares being offered by the Selling Shareholder. GlobalFoundries has agreed to concurrently repurchase from the underwriters $200 million of the Selling Shareholder’s ordinary shares that are subject to the offering at a price per share equal to the public offering price for the offering (the “Share Repurchase”). GlobalFoundries intends to fund the Share Repurchase with cash on its balance sheet. GlobalFoundries expects the closing of the Share Repurchase to occur substantially simultaneously with the closing of the offering. The closing of the Share Repurchase is conditioned on the closing of the offering. The closing of the offering is not conditioned on the closing of the Share Repurchase. The underwriters are not receiving any discount or commission with respect to the ordinary shares being repurchased by GlobalFoundries pursuant to the Share Repurchase. Morgan Stanley & Co. LLC and BofA Securities are acting as book-running managers for the offering. Citigroup, Goldman Sachs & Co. LLC and J.P. Morgan are acting as active book-running managers for the offering. Deutsche Bank Securities, Evercore ISI and HSBC Securities (USA) Inc. are acting as additional book-running managers for the offering. Baird, Needham & Company, Raymond James, Wedbush Securities, Drexel Hamilton and Siebert Williams Shank are acting as co-managers for the offering. The offering of these securities is being made only by means of a prospectus. A registration statement relating to these securities has been filed with the Securities and Exchange Commission (the “SEC”) and has become effective. A preliminary prospectus supplement and accompanying prospectus relating to the offering has been filed, and a final prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC. Copies of the final prospectus supplement and the accompanying prospectus relating to this offering may be obtained from: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, or by email at [email protected]; BofA Securities, Attention: Prospectus Department, NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001, or by email at [email protected]; or by accessing the SEC’s website at www.sec.gov. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. About GlobalFoundries GlobalFoundries® (GF®) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. GlobalFoundries Inc., GF, GlobalFoundries, the GF logos and other GF marks are trademarks of GlobalFoundries Inc. or its subsidiaries. All other trademarks are the property of their respective owners. Forward-Looking Statements This press release includes “forward-looking statements” that reflect our current expectations and views of future events. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995 and include but are not limited to, statements regarding the expected completion of the offering and the Share Repurchase. These statements are based on current expectations, assumptions, estimates, forecasts, projections and limited information available at the time they are made. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” “outlook,” “on track,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are subject to a broad variety of risks and uncertainties, both known and unknown including regarding market conditions, our business and the Selling Shareholder. Any inaccuracy in our assumptions and estimates could affect the realization of the expectations or forecasts in these forward-looking statements. Recipients are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date such statements are made and should not be construed as statements of fact. Except to the extent required by federal securities laws, we undertake no obligation to update any information or any forward-looking statements as a result of new information, subsequent events, or any other circumstances after the date hereof, or to reflect the occurrence of unanticipated events. For a discussion of potential risks and uncertainties, please refer to the risk factors and cautionary statements in our 2023 Annual Report on Form 20-F, current reports on Form 6-K and other reports filed with the Securities and Exchange Commission. Copies of our SEC filings are available on our Investor Relations website, investors.gf.com, or from the SEC website, www.sec.gov. Investor Contact:[email protected] Media Contact:[email protected]
GlobalFoundries Announces Launch of $950 Million Secondary Offering of Ordinary Shares, Including Concurrent $200 Million Share Repurchase May 22, 2024 MALTA, NY, May 22, 2024 – GlobalFoundries Inc. (“GlobalFoundries” or “GF”) (Nasdaq: GFS) today announced the launch of a secondary public offering of $950 million of its ordinary shares (including a $200 million share repurchase, as described below). All of the shares in the offering are being offered by Mubadala Technology Investment Company (the “Selling Shareholder”). The Selling Shareholder is a wholly owned subsidiary of Mubadala Investment Company PJSC (which, together with its affiliates, is GlobalFoundries’ largest shareholder). The Selling Shareholder is expected to grant the underwriters a 30-day option to purchase up to an additional $112.5 million of GlobalFoundries’ ordinary shares (equal to 15% of the initial ordinary shares being sold to the public). GlobalFoundries is not selling any ordinary shares in the offering and will not receive any proceeds from the sale of the shares being offered by the Selling Shareholder. GlobalFoundries intends to concurrently repurchase from the underwriters approximately $200 million of the Selling Shareholder’s ordinary shares that are subject to the offering at a price per share equal to the public offering price for the offering (the “Share Repurchase”). GlobalFoundries intends to fund the Share Repurchase with cash on its balance sheet. GlobalFoundries expects the closing of the Share Repurchase to occur substantially simultaneously with the closing of the offering. The closing of the Share Repurchase is conditioned on the closing of the offering. The closing of the offering is not conditioned on the closing of the Share Repurchase. The underwriters are not receiving any discount or commission with respect to the ordinary shares being repurchased by GlobalFoundries pursuant to the Share Repurchase. Morgan Stanley & Co. LLC and BofA Securities are acting as book-running managers for the offering. The offering of these securities is being made only by means of a prospectus. A registration statement relating to these securities has been filed with the Securities and Exchange Commission (the “SEC”) and has become effective. A preliminary prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC. A copy of the preliminary prospectus relating to the offering, when available, may be obtained from: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, or by email at [email protected]; BofA Securities, Attention: Prospectus Department, NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001, or by email at [email protected]; or by accessing the SEC’s website at www.sec.gov. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. About GlobalFoundries GlobalFoundries® (GF®) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. GlobalFoundries Inc., GF, GlobalFoundries, the GF logos and other GF marks are trademarks of GlobalFoundries Inc. or its subsidiaries. All other trademarks are the property of their respective owners. Forward-Looking Statements This press release includes “forward-looking statements” that reflect our current expectations and views of future events. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995 and include but are not limited to, statements regarding the terms, timing and expected completion of the offering and the Share Repurchase. These statements are based on current expectations, assumptions, estimates, forecasts, projections and limited information available at the time they are made. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” “outlook,” “on track,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are subject to a broad variety of risks and uncertainties, both known and unknown, including regarding market conditions, our business and the Selling Shareholder. Any inaccuracy in our assumptions and estimates could affect the realization of the expectations or forecasts in these forward-looking statements. Recipients are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date such statements are made and should not be construed as statements of fact. Except to the extent required by federal securities laws, we undertake no obligation to update any information or any forward-looking statements as a result of new information, subsequent events, or any other circumstances after the date hereof, or to reflect the occurrence of unanticipated events. For a discussion of potential risks and uncertainties, please refer to the risk factors and cautionary statements in our 2023 Annual Report on Form 20-F, current reports on Form 6-K and other reports filed with the Securities and Exchange Commission. Copies of our SEC filings are available on our Investor Relations website, investors.gf.com, or from the SEC website, www.sec.gov. Investor Contact:[email protected] Media Contact:[email protected]
GlobalFoundries Partners with Micron and U.S. National Science Foundation to Drive Semiconductor Workforce Development at Minority Serving Institutions May 21, 2024 Effort aims to develop the next generation of diverse semiconductor talent, accelerate R&D and strengthen collaboration between industry and academia MALTA, N.Y., May 21, 2024 — GlobalFoundries (Nasdaq: GFS) (GF) today announced a partnership with Micron Technology, Inc. (Nasdaq: MU) and the U.S. National Science Foundation (NSF) to invest in workforce development at Minority Serving Institutions (MSI) to help meet the growing workforce needs of the U.S. semiconductor ecosystem. In partnership with Micron and the NSF, the investment will support semiconductor workforce development at Historically Black College and Universities, Hispanic Serving Institutions, Asian American Native American Pacific Islander-Serving Institutions and Tribal Colleges and Universities throughout the U.S. These investments aim to diversify the semiconductor workforce and build robust talent pathways through education and career reentry initiatives. The companies’ and NSF ’s support of U.S. MSIs is directly aligned with the workforce development objectives of the federal CHIPS and Science Act as well as New York State’s Green Chips legislation, to ensure a robust pipeline of U.S. semiconductor talent. “As an industry, we must work together to collectively address the great need for a robust, diverse pipeline of talented individuals who will be the semiconductor innovators and leaders of tomorrow,” said Pradheepa Raman, chief people officer of GF. “Strong public-private partnerships, like our collaboration with Micron and NSF to support Minority Serving Institutions, are critical to continue the work of inspiring and developing the skilled workforce our industry needs to grow.” “Partnering with leaders in industry, government and education to meet the needs of a growing semiconductor workforce in the U.S. is an essential part of nurturing the talent necessary to fill key openings in the semiconductor industry,” said Erwin Gianchandani, NSF assistant director for Technology, Innovation and Partnerships. “We look forward to collaborating with our partners to increase access to equitable education, address student programming and teacher and faculty professional development and strengthen infrastructure through future funding opportunities.” “Micron’s investments in U.S. expansion are about much more than building fabs. We’re investing in people and in partnerships to expose learners from every background to opportunities they may not otherwise have without support,” said April Arnzen, executive vice president and chief people officer at Micron and president of the Micron Foundation. “We’re honored to see initiatives like Micron’s MSI Semiconductor Network, which are at the forefront of our industry’s efforts to prepare the semiconductor workforce and research ecosystem to meet growing demand for talent, recognized by government leaders in the U.S. and globally.” “Micron’s and GlobalFoundries’ historic investments are transformative for Upstate New York and the nation, and today’s announcement will put in place another critical workforce development initiative to deliver the workers needed to fill the tens of thousands of new jobs that will be created. This initiative will especially focus on connecting underserved and historically marginalized New Yorkers and others around the country to new job opportunities in the semiconductor industry, including to build chips in Upstate NY,” said Senate Majority Leader Chuck Schumer. “In recent weeks, my CHIPS & Science Law delivered a whopping $6.1 billion for Micron to build their mega-fab project and another $1.5 billion for GlobalFoundries’ expansion. Now, Micron and GlobalFoundries are working to develop a workforce pipeline to train and attract the next generation of talent, putting students from our top-notch educational institutions into jobs in the semiconductor industry. I am glad this initiative is supported by National Science Foundation funds from my CHIPS & Science Law, which serves as the fuel for major investments like Micron’s and GlobalFoundries’ to bring chip manufacturing back to America and helping our future scientists and engineers reach new heights with good-paying jobs right at their doorstep.” “We are excited about the opportunities to grow efforts with GlobalFoundries that have led to increased summer internships and experiences at GF’s Malta, NY, facility for students at multiple CUNY schools including LaGuardia, Queensborough and City Tech,” said Tavis Ezell, director of business development for The City University of New York’s (CUNY) Advanced Science Research Center (ASRC). “With our industry partners, we are identifying the necessary skills needed to support jobs across the vast semiconductor ecosystem and bolster current curricula across a wide range of CUNY degrees, connecting interested students to training opportunities, whether their first internship experience is at the ASRC, or at an industry partner such as GlobalFoundries.” GF’s support of MSIs is the company’s latest effort to build a critical talent pipeline for a current and future workforce. In November 2023, the company announced a new student loan repayment program to help U.S.-based employees and eligible new recruits pay up to $28,500 in student loan debt, tax-free, to help ease the financial burden of higher education and training. GF also offers tuition reimbursement for employees pursuing undergraduate and graduate degrees, fully paid parental leave, employee fitness stipend to promote good health and childcare subsidy towards dependent care. GF’s first-of-its-kind apprenticeship program provides opportunities for individuals with no prior experience or training in the semiconductor industry, offering full-time paid positions and cost-free college courses to high school graduates. GF has established strategic partnerships nationwide with top universities and strong regional engagements with community colleges in New York and Vermont as well as access to worldwide talent through its global footprint to help build a diverse workforce and semiconductor talent pipeline. To help inspire younger children, GF has a robust STEM outreach program to engage with regional middle schools and high schools, including Early College High School and Career and Technical Education programs, to bring industry awareness and hands-on experiences to students. About GF GlobalFoundries (GF) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development, and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com. ©GlobalFoundries Inc., GF, GlobalFoundries, the GF logos and other GF marks are trademarks of GlobalFoundries Inc. or its subsidiaries. All other trademarks are the property of their respective owners. Media Contact: Michael Mullaney [email protected]
GlobalFoundries Appoints KC Ang as President of Asia May 20, 2024 Industry veteran to expand company’s business development and strategic partnerships in Asia with focus on China BEIJING, China, May 20, 2024 – GlobalFoundries (NASDAQ: GFS) (GF) today announced the appointment of industry and company veteran, Kay Chai (KC) Ang, as president of Asia and Chairman of China. With over 30 years of semiconductor foundry experience, Mr. Ang will lead new business development and strategic partnerships across Asia with a focus on China. Mr. Ang joined GF in 2010 and has served in a variety of senior leadership roles for the company including most recently as Chief Manufacturing Officer with responsibility for GF’s global sites as well as previously as head of all GF’s Singapore operations. Prior to joining GF, Mr. Ang held senior leadership positions at Chartered Semiconductor Manufacturing, including Senior Vice President of Sales and Marketing with responsibility for global sales, marketing, services, customer support and regional business operations. Mr. Ang has been a key player in the growth of Singapore’s chip industry. He serves on the Board of the National Research Foundation in Singapore and is the Chairman of the SEMI Southeast Asia Regional Advisory Board. “At GF, we leverage our global footprint to provide our customers with the secure, essential chips they need, where they want them produced,” said Niels Anderskouv, chief business officer at GF. “Given his more than 30 years experience coupled with his long-standing relationships with some of Asia’s most senior semiconductor industry leaders, KC is the ideal leader to drive customer engagements and partnerships across Asia and accelerate GF’s business growth within the China market in particular.” “I am excited about this next stage of my career. I am looking forward to partnering with my commercial, technical and product management colleagues to expand GF’s relationships and be a trusted, dependable partner for our customers,” said KC Ang, president, Asia & Chairman, China at GF. “The differentiated technology solutions that we offer combined with our manufacturing excellence, especially in key end markets such as automotive, make us a perfect partner for fast growing customers in Asia. In addition, we are responding to many of our existing multi-national customers who are looking for ways to partner with GF to serve the growing demands of their Chinese end customers with high quality manufacturing and essential chip technologies.” ### About GF GlobalFoundries (GF) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development, and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com. ©GlobalFoundries Inc., GF, GlobalFoundries, the GF logos and other GF marks are trademarks of GlobalFoundries Inc. Or its subsidiaries. All other trademarks are the property of their respective owners. Media Contact: Luana Low+65 9106 3469[email protected]
GlobalFoundries Reports First Quarter 2024 Financial Results May 7, 2024 MALTA, N.Y., May 07, 2024 (GLOBE NEWSWIRE) — GlobalFoundries Inc. (GF) (Nasdaq: GFS) today announced preliminary financial results for the first quarter ended March 31, 2024. Key First Quarter Financial Highlights Revenue of $1.549 billion Gross margin of 25.4% and Non-IFRS gross margin(1) of 26.1% Operating margin of 9.5% and Non-IFRS operating margin(1) of 12.1% Net income of $134 million and Non-IFRS net income(1) of $174 million Non-IFRS EBITDA(1) of $577 million Cash, cash equivalents and marketable securities of $4.2 billion “In the first quarter, GF’s dedicated teams across the world delivered financial results that exceeded the high end of the guidance ranges we provided in our February earnings release,” said Dr. Thomas Caulfield, president and CEO of GF. “As pockets of the semiconductor industry begin to emerge from the inventory correction, our teams are driving foundry innovation and differentiation for our customers across their essential end-markets. We are delighted with the awards from both the U.S. Department of Commerce and New York State to expand our manufacturing capability in the United States, which will complement our unique global capacity offering.” Recent Business Highlights As part of the U.S. CHIPS and Science Act, the U.S. Department of Commerce announced $1.5 billion in planned direct funding for GF’s New York and Vermont facilities. The proposed funding will support expansion and technology diversification, enabling secure capacity for automotive, aerospace and defense and other key markets. In addition, New York State announced over $600 million in planned funding under the New York State Green CHIPS and other state benefits for GF’s two Malta, New York projects. GF is furthering its commitment to sustainable operations and fighting climate change with the announcement of two new long-term goals to achieve net-zero greenhouse gas emissions and 100% carbon neutral power by 2050. The new 2050 goals are aligned with Paris Agreement goals and build upon GF’s Journey to Zero Carbon pledge in 2021. (1) Non-IFRS gross profit, Non-IFRS operating profit, Non-IFRS net income, Non-IFRS EBITDA and any related margins are all Non-IFRS measures. See “Unaudited Reconciliation of IFRS to Non-IFRS” for a detailed reconciliation of Non-IFRS measures to the most directly comparable IFRS measure. See “Financial Measures (Non-IFRS)” for a discussion of why we believe these Non-IFRS measures are useful. Unaudited Summary Quarterly Results (in millions USD, except per share amounts and wafer shipments) Year-over-year Sequential Q1’24 Q4’23 Q1’23 Q1’24 vs Q1’23 Q1’24 vs Q4’23 Net revenue $ 1,549 $ 1,854 $ 1,841 $ (292 ) (16)% $ (305 ) (16)% Gross profit 393 525 515 $ (122 ) (24)% $ (132 ) (25)% Gross margin 25.4 % 28.3 % 28.0 % (260)bps (290)bps Non-IFRS gross profit(1) $ 405 $ 537 $ 525 $ (120 ) (23)% $ (132 ) (25)% Non-IFRS gross margin(1) 26.1 % 29.0 % 28.5 % (240)bps (290)bps Operating profit $ 147 $ 303 $ 290 $ (143 ) (49)% $ (156 ) (51)% Operating margin 9.5 % 16.3 % 15.8 % (630)bps (680)bps Non-IFRS operating profit(1) $ 187 $ 383 $ 326 $ (139 ) (43)% $ (196 ) (51)% Non-IFRS operating margin(1) 12.1 % 20.7 % 17.7 % (560)bps (860)bps Net income $ 134 $ 278 $ 254 $ (120 ) (47)% $ (144 ) (52)% Net income margin 8.7 % 15.0 % 13.8 % (510)bps (630)bps Non-IFRS net income(1) $ 174 $ 356 $ 290 $ (116 ) (40)% $ (182 ) (51)% Non-IFRS net income margin(1) 11.2 % 19.2 % 15.8 % (460)bps (800)bps Diluted earnings per share (“EPS”) $ 0.24 $ 0.50 $ 0.46 $ (0.22 ) (48)% $ (0.26 ) (52)% Non-IFRS diluted EPS(1) $ 0.31 $ 0.64 $ 0.52 $ (0.21 ) (40)% $ (0.33 ) (52)% Non-IFRS EBITDA(1) $ 577 $ 773 $ 655 $ (78 ) (12)% $ (196 ) (25)% Non-IFRS EBITDA margin(1) 37.2 % 41.7 % 35.6 % +160bps (450)bps Cash from operations $ 488 $ 684 $ 479 $ 9 2 % $ (196 ) (29)% Wafer shipments (300mm equivalent) (in thousands) 463 552 511 (48 ) (9)% (89 ) (16)% (1) Non-IFRS gross profit, Non-IFRS operating profit, Non-IFRS net income, Non-IFRS diluted EPS, Non-IFRS EBITDA, and any related margins are all Non-IFRS measures. See “Unaudited Reconciliation of IFRS to Non-IFRS” section for a detailed reconciliation of Non-IFRS measures to the most directly comparable IFRS measure. See “Financial Measures (Non-IFRS)” for a discussion of why we believe these Non-IFRS metrics are useful. Summary of Second Quarter 2024 Guidance (unaudited in millions USD, except per share amounts)(1) IFRS Share-based compensation Non-IFRS (2) Net revenue $1,590 – $1,640 — — Gross profit $367 – $413 $13 – $15 $382 – $426 Gross margin(3) (mid-point) 24.1% 25.0% Operating profit $94 – $168 $45 – $55 $149 – $213 Operating margin(3) (mid-point) 8.1% 11.2% Net income $78 – $146 $45 – $55 $133 – $191 Net income margin(3) (mid-point) 6.9% 10.0% Diluted EPS $0.14 – $0.26 $0.24 – $0.34 (1) The Guidance provided above contains forward-looking statements as defined in the U.S. Private Securities Litigation Act of 1995, and is subject to the safe harbors created therein. The Guidance includes management’s beliefs and assumptions and is based on information currently available. (2) Non-IFRS gross profit, Non-IFRS operating expense, Non-IFRS operating profit, Non-IFRS net income, and Non-IFRS diluted EPS are Non-IFRS metrics and, for purposes of the Guidance only, are defined as gross profit, operating profit, net income, and EPS before share-based compensation, respectively. Non-IFRS operating expense is calculated by subtracting Non-IFRS operating profit from Non-IFRS gross profit. (3) Non-IFRS margins are Non-IFRS metrics and for purposes of the Guidance only, are defined as Non-IFRS gross profit, Non-IFRS operating profit and Non-IFRS net income, each divided by net revenue (using the definitions of Non-IFRS gross profit, Non-IFRS operating profit, and Non-IFRS net income, in footnote (2) above, as appropriate). Unaudited Consolidated Statements of Operations Three Months Ended (in millions USD, except for per share amounts) March 31, 2024 March 31, 2023 Net revenue $ 1,549 $ 1,841 Cost of revenue 1,156 $ 1,326 Gross profit $ 393 $ 515 Operating expenses: Research and development 124 109 Selling, general and administrative(1) 122 111 Restructuring charges — 5 Total operating expenses $ 246 225 Operating profit $ 147 290 Finance income (expense), net 10 1 Other income (expense) (2 ) (14 ) Income tax expense (21 ) (23 ) Net income $ 134 $ 254 Attributable to: Shareholders of GlobalFoundries 133 $ 254 Non-controlling interest 1 — EPS: Basic $ 0.24 $ 0.46 Diluted $ 0.24 $ 0.46 Shares used in EPS calculation: Basic 555 550 Diluted 558 555 (1) Beginning in Q3 2023, selling, general and administrative includes (gain)/loss on tool sales and certain contract cancellation fees. Prior period amounts have not been adjusted, as they are immaterial. Unaudited Consolidated Statements of Financial Position (in millions USD) March 31, 2024 December 31, 2023 Assets: Cash and cash equivalents $ 2,247 $ 2,387 Receivables, prepayments and other 1,190 1,420 Marketable securities 1,110 1,033 Inventories 1,667 1,487 Current assets $ 6,214 $ 6,327 Deferred tax assets $ 218 $ 241 Property, plant, and equipment, net 10,304 10,164 Marketable securities 807 468 Other assets 911 844 Non-current assets $ 12,240 $ 11,717 Total assets $ 18,454 $ 18,044 Liabilities and equity: Current portion of long-term debt $ 542 $ 571 Other current liabilities 2,312 2,528 Current liabilities $ 2,854 $ 3,099 Non-current portion of long-term debt $ 1,766 $ 1,801 Other liabilities 2,537 1,993 Non-current liabilities $ 4,303 $ 3,794 Shareholders’ equity: Common stock/additional paid-in capital $ 24,078 $ 24,038 Accumulated deficit (12,868 ) (13,001 ) Accumulated other comprehensive income 41 67 Non-controlling interest 46 47 Total liabilities and equity $ 18,454 $ 18,044 Unaudited Consolidated Statements of Cash Flows Three Months Ended (in millions USD) March 31, 2024 March 31, 2023 Cash flows from operating activities: Net income $ 134 $ 254 Depreciation and amortization 392 343 Finance (income) expense, net and other 6 7 Deferred income taxes 23 22 Other non-cash operating activities 30 27 Net change in working capital (97 ) (174 ) Net cash provided by operating activities $ 488 $ 479 Cash flows from investing activities: Purchases of property, plant, equipment, and intangible assets $ (227 ) $ (853 ) Other investing activities (373 ) 267 Net cash used in investing activities $ (600 ) $ (586 ) Cash flows from financing activities: Proceeds from issuance of equity instruments and other $ 23 $ 37 Proceeds (repayment) of debt, net (50 ) (30 ) Other financing activities — 3 Net cash (used in) provided by financing activities $ (27 ) $ 10 Effect of exchange rate changes (1 ) 1 Net change in cash and cash equivalents $ (140 ) $ (96 ) Cash and cash equivalents at the beginning of the period 2,387 2,352 Cash and cash equivalents at the end of the period $ 2,247 $ 2,256 Unaudited Reconciliation of IFRS to Non-IFRS Three Months Ended (in millions USD, except for per share amounts) March 31, 2024 December 31, 2023 March 31, 2023 Net Revenue $ 1,549 $ 1,854 $ 1,841 Gross profit $ 393 $ 525 $ 515 Gross profit margin 25.4 % 28.3 % 28.0 % Share-based compensation $ 12 $ 12 $ 10 Non-IFRS gross profit(1) $ 405 $ 537 $ 525 Non-IFRS gross margin(1) 26.1 % 29.0 % 28.5 % Selling, general and administrative(2) $ 122 $ 87 $ 111 Share-based compensation $ 21 $ 30 $ 17 Non-IFRS selling, general and administrative(1) $ 101 $ 57 $ 94 Research and development $ 124 $ 105 $ 109 Share-based compensation $ 7 $ 8 $ 4 Non-IFRS research and development(1) $ 117 $ 97 $ 105 Operating profit $ 147 $ 303 $ 290 Operating profit margin 9.5 % 16.3 % 15.8 % Share-based compensation $ 40 $ 50 $ 31 Restructuring charges $ — $ 30 $ 5 Non-IFRS operating profit(1) $ 187 $ 383 $ 326 Non-IFRS operating profit margin(1) 12.1 % 20.7 % 17.7 % Net income $ 134 $ 278 $ 254 Net income margin 8.7 % 15.0 % 13.8 % Share-based compensation $ 40 $ 50 $ 31 Restructuring charges $ — $ 30 $ 5 Income tax effect(3) $ — $ (2 ) $ — Non-IFRS net income(1) $ 174 $ 356 $ 290 Non-IFRS net income margin(1) 11.2 % 19.2 % 15.8 % Diluted EPS $ 0.24 $ 0.50 $ 0.46 Share-based compensation $ 0.07 $ 0.09 $ 0.05 Restructuring charges $ — $ 0.05 $ 0.01 Income tax effect(3) $ — $ — $ — Diluted shares outstanding 558 557 555 Non-IFRS diluted EPS(1) $ 0.31 $ 0.64 $ 0.52 (1)Non-IFRS gross profit, Non-IFRS selling, general and administrative, Non-IFRS research and development, Non-IFRS operating profit, Non-IFRS operating expense (calculated by subtracting Non-IFRS operating profit from Non-IFRS gross profit), Non-IFRS net income, Non-IFRS diluted EPS and any related margins are all Non-IFRS measures. See “Financial Measures (Non-IFRS)” for a discussion of why we believe these Non-IFRS measures are useful. (2) Beginning in Q3 2023, selling, general and administrative includes (gain)/loss on tool sales and certain contract cancellation fees. Prior period amounts have not been adjusted, as they are immaterial. (3) Relates to restructuring charges. Non-IFRS Free Cash Flow(1) Three Months Ended (in millions USD) March 31, 2024 December 31, 2023 March 31, 2023 Net cash provided by operating activities $ 488 $ 684 $ 479 Less: Purchase of property, plant and equipment and intangible assets $ (227 ) $ (228 ) $ (853 ) Non-IFRS free cash flow(2) $ 261 $ 456 $ (374 ) (1) Non-IFRS free cash flow is a Non-IFRS measure. See “Financial Measures (Non-IFRS)” for a discussion of why we believe these Non-IFRS measures are useful. (2) Beginning Q1 2024 Non-IFRS free cash flow includes proceeds from government grants related to capital expenditures. This change in methodology is in anticipation of future expected proceeds from government grants related to capital expenditures from the planned funding awarded under the U.S. CHIPS and Science Act and the New York State Green CHIPS, and better aligns our Non-IFRS free cash flow metric to how GF assesses capital decisions internally. As such, prior periods have not been adjusted to reflect this new calculation methodology. Proceeds from government grants were $0, $137 million and $0 for the three months periods ending March 31, 2024, December 31, 2023 and March 31, 2023, respectively. Unaudited Reconciliation of Net Income to Non-IFRS EBITDA Three Months Ended (in millions USD) March 31, 2024 December 31, 2023 March 31, 2023 Net income for the period $ 134 $ 278 $ 254 Depreciation and amortization 392 $ 402 343 Finance expense 37 $ 35 31 Finance income (47 ) $ (43 ) (32 ) Income tax expense (benefit) 21 $ 21 23 Share-based compensation 40 $ 50 31 Restructuring charges — $ 30 5 Non-IFRS EBITDA(1)(2) $ 577 $ 773 $ 655 Non-IFRS EBITDA margin(1)(2) 37.2 % 41.7 % 35.6 % (1) For the periods presented above, there were no labor optimization expenses or divestiture gains and associated expenses, legal settlements and transaction expenses. (2) Non-IFRS EBITDA and any related margin are Non-IFRS measures. See “Financial Measures (Non-IFRS)” for a discussion of why we believe these Non-IFRS measures are useful. Financial Measures (Non-IFRS) In addition to the financial information presented in accordance with IFRS, this press release includes the following Non-IFRS metrics: Non-IFRS gross profit, Non-IFRS operating profit, Non-IFRS operating expense, Non-IFRS net income, Non-IFRS selling, general and administrative, Non-IFRS research and development, Non-IFRS diluted earnings per share (“EPS”), Non-IFRS EBITDA, Non-IFRS free cash flow and any related margins. We define each of Non-IFRS gross profit, Non-IFRS selling, general and administrative and Non-IFRS research and development as each respective IFRS measure adjusted for share-based compensation. We define Non-IFRS operating profit as operating profit adjusted for share-based compensation and restructuring charges. We define Non-IFRS operating expense as Non-IFRS gross profit minus Non-IFRS operating profit. We define Non-IFRS net income as net income adjusted for share-based compensation, restructuring charges and the associated tax impact. We define Non-IFRS diluted EPS as Non-IFRS net income divided by the diluted shares outstanding. We define Non-IFRS free cash flow as cash flow provided by (used in) operating activities less purchases of property, plant and equipment and intangible assets plus proceeds from government grants related to capital expenditures. We define Non-IFRS EBITDA as net income, adjusted for the impact of finance expense, finance income, income tax expense (benefit), depreciation and amortization, share-based compensation, restructuring charges, labor optimization initiatives and divestiture gains and associated expenses, legal settlements and transaction expenses. We define Non-IFRS gross margin as Non-IFRS gross profit divided by revenue. We define Non-IFRS operating margin as Non-IFRS operating profit divided by net revenue. We define Non-IFRS EBITDA margin as Non-IFRS EBITDA divided by net revenue. We believe that in addition to our results determined in accordance with IFRS, these Non-IFRS measures provide useful information to both management and investors in measuring our financial performance and highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures. These Non-IFRS financial measures provide supplemental information regarding our operating performance that excludes certain gains, losses and non-cash charges that occur relatively infrequently and/or that we consider to be unrelated to our core operations. Management believes that Non-IFRS free cash flow as a Non-IFRS measure is helpful to investors as it provides insights into the nature and amount of cash the Company generates in the period. For further information regarding these Non-IFRS measures, please refer to “Unaudited Reconciliation of IFRS to Non-IFRS” table above. Non-IFRS financial information is presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for financial information presented in accordance with IFRS. Our presentation of Non-IFRS measures should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items. Other companies in our industry may calculate these measures differently, which may limit their usefulness as a comparative measure. Conference Call and Webcast Information GF will host a conference call with the financial community on Tuesday, May 7, 2024 at 8:30 a.m. U.S. Eastern Time (ET) to review the first quarter 2024 results in detail. Interested parties may join the scheduled conference call by registering at https://register.vevent.com/register/BI80dca5c8687f4d3a907a0fb1e1a02465. The call will be webcast and can be accessed from the GF Investor Relations website https://investors.gf.com. A replay of the call will be available on the GF Investor Relations website within 24 hours of the actual call. About GlobalFoundries GlobalFoundries® (GF®) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com. Forward-looking Statements This press release includes “forward-looking statements” that reflect our current expectations and views of future events. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995 and include but are not limited to, statements regarding our financial outlook, future guidance, product development, business strategy and plans, and market trends, opportunities and positioning. These statements are based on current expectations, assumptions, estimates, forecasts, projections and limited information available at the time they are made. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” “outlook,” “on track,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are subject to a broad variety of risks and uncertainties, both known and unknown. Any inaccuracy in our assumptions and estimates could affect the realization of the expectations or forecasts in these forward-looking statements. For example, our business could be impacted by geopolitical conditions such as the ongoing political and trade tensions with China and the wars in Ukraine and Israel; the market for our products may develop or recover more slowly than expected or than it has in the past; we may fail to achieve the full benefits of our restructuring plan; our operating results may fluctuate more than expected; there may be significant fluctuations in our results of operations and cash flows related to our revenue recognition or otherwise; a network or data security incident that allows unauthorized access to our network or data or our customers’ data could result in a system disruption, loss of data or damage our reputation; we could experience interruptions or performance problems associated with our technology, including a service outage; global economic conditions could deteriorate, including due to increasing interest rates, rising inflation and any potential recession; and our expected results and planned expansions and operations may not proceed as planned if funding we expect to receive (including the planned awards under the U.S. CHIPS and Science Act and New York State Green CHIPS) is delayed or withheld for any reason. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Moreover, we operate in a competitive and rapidly changing market, and new risks may emerge from time to time. You should not rely upon forward-looking statements as predictions of future events. These statements are based on our historical performance and on our current plans, estimates and projections in light of information currently available to us, and therefore you should not place undue reliance on them. Although we believe that the expectations reflected in our statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances described in the forward-looking statements will be achieved or occur. Moreover, neither we, nor any other person, assumes responsibility for the accuracy and completeness of these statements. Recipients are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date such statements are made and should not be construed as statements of fact. Except to the extent required by federal securities laws, we undertake no obligation to update any information or any forward-looking statements as a result of new information, subsequent events, or any other circumstances after the date hereof, or to reflect the occurrence of unanticipated events. For a discussion of potential risks and uncertainties, please refer to the risk factors and cautionary statements in our 2023 Annual Report on Form 20-F, current reports on Form 6-K and other reports filed with the Securities and Exchange Commission. Copies of our SEC filings are available on our Investor Relations website, investors.gf.com, or from the SEC website, www.sec.gov. For further information, please contact: Investor Relations [email protected]
We Shape What’s Essential: A Conversation with Hui Peng Koh May 2, 2024 Hui Peng discusses her journey from process engineer to General Manager, the CHIPS and Science Act and the future of GlobalFoundries’s most advanced manufacturing site Having dedicated her entire career to the semiconductor industry within GlobalFoundries’ (GF) walls, Hui Peng began her journey at GF’s Singapore site nearly a quarter-century ago, making her a familiar face these days in the hallways and cleanrooms of GF. Her path from process engineer to leading GF’s Malta, New York, fab has spanned the globe, and today, she leads a team of more than 1,200 employees in manufacturing and engineering operations. Recently her team in Malta gained significant attention following the announcement that it would receive the first major award proposed by the U.S. CHIPS and Science Act. With such an exciting development, we seized the opportunity to catch up with Hui Peng to talk about her role, leadership, and the insights and experiences shaping her vision for GF’s New York fab and the future of the semiconductor industry. Let’s start with the most recent developments. What are you most excited about for Malta fab’s next chapter following this proposed investment? The proposed funding will support multiple GF projects, here in Malta and at our site in Burlington, VT. Here, the biggest impact the proposed investment is going to have in New York specifically is that we will be adding wafer manufacturing capacity to our Malta facility. The first part is the expansion of our capacity within the current four walls of the fab. The second phase, which involves the construction of a new state-of-the-art fab on our Malta campus, will come afterwards to support the industry as demand continues to rise. The goal of both phases is adding secure capacity for essential chip manufacturing for automotive and other key markets. How will the proposed funding diversify GF’s Malta fab into new technologies and end markets? The proposed investment will allow GF to bring different shades of technology to the fab. Independent of the funding, our goal as a foundry is always to diversify our technology portfolio to bring the most value to customers. We always say there are three elements needed to help us add capacity – GF investment, government investments, and customer demand. All three come together to help add capacity to bring new technologies to our end market customers across automotive, aerospace, defense, IoT and other vital markets to help them reach their goals. We’re excited that the generous investment from the Department of Commerce will enable us to do this faster. Switching gears, could you tell us more about your journey that led you to being the GM of GF’s fab in Malta, NY? I started my journey in the semiconductor industry as a lithography process development engineer in Singapore at Chartered Semiconductor, a site later acquired by GF. After receiving my master’s degree in engineering from Nanyang Technological University and spending a decade in technology development in Singapore, I moved to the United States to lead EUV lithography research, which is the process of using cutting-edge light technology to draw the tiny circuits inside. I returned to manufacturing facilities when the Malta fab was founded. I started by leading a module (Lithography), then became the overall module engineering leader. I’m incredibly honored to have stepped into the role of General Manager of the fab last summer. I’d imagine all of your responsibilities keep you quite busy! What does your day to day look like as the leader of the fab? My day to day is comprised of three primary tasks, which include: Reviewing operations performance to ensure we are operating efficiently from a capacity and cost perspective Strategy initiative reviews, to make sure that the fab is positioned for a bright future Spending time with my team My favorite part of the role is spending time with the extended team. Whether it’s one-on-one interactions in the halls of the fab or formal leadership gatherings, meeting with my team gives me energy and inspires me. Switching between these different duties can prove to be challenging at times, but it’s also what makes the job so exciting. You are GF’s first female GM. Given this significant accomplishment in a historically male-dominated industry, what developments would you like to see in the semiconductor workforce? I became a manager early on in my career. Along the journey, I have been able to motivate and inspire other female talent. In my current role as fab GM, I’m in a position where I can make a much bigger impact in fulfilling my aspiration to bring more women into the semiconductor industry. Driving the percentage of women in GF’s’ workforce is a goal we are continuously working towards, and we’ve already seen great progress in growing the percentage of females in new college graduates and our intern cohorts, which were 38% women last year. As I strive to further the professional growth of hundreds of women in the semiconductor workforce through mentorship, guidance and advocacy for female talent within GF, I also hope to see these efforts replicated on a wider scale throughout the industry. What do you enjoy most about working with the local Malta community? As one of the largest employers in the region, the engagement we have with the local community is very important to us. In fact, we owe the huge strides we are taking in workforce development in part to this community. For example, we partner closely with Hudson Valley Community College on our apprenticeship program to prepare individuals to fill positions in the organization, which has become even more critical due to the shortage of qualified workers. With GF being so well supported by our friends in Malta, we are always looking to give back to this community. From volunteering at the food pantry and animal shelters to sponsoring STEM events with local charitable organizations, I’m always happy to see our teams work together to make Malta a better place. What is your advice to semiconductor professionals earlier in their careers, or individuals considering pursuing a career in the industry? I always like to tell people that technically this is my first job. For everyone, it’s important to start with the things you love doing. Once you’ve identified your passion, you can continue to grow within a company or industry. It’s an extremely exciting time in the semiconductor industry, and I believe there are even more opportunities for individuals to grow, make an impact and be a role model to others on the same path. One of the biggest personal motivators for me has been the endless possibilities to learn and be part of the solution. In the semiconductor industry, there are so many opportunities to make a difference. There is never a dull moment in the job we are doing, and I’m lucky to be able to work alongside so many talented individuals at GF. Are there any trends you’re looking forward to seeing in the industry in the next few years? I’m watching two forces closely – one from a technology side, the other from the talent perspective. I’m excited to see artificial intelligence play out in the space. Due to its novelty, it has yet to be fully understood in terms of how it is going to translate to demand and the need for innovation. At GF, we are keeping a close eye on how the rise of AI will impact the technology we are driving, the customers we serve, and the role we play in the semiconductor industry. Workforce development will also be a key part of the story. Right now, there’s a lot of attention on how to build talent quickly to support industry growth. In the next few years, I hope to see the industry come together more to address this issue as a whole, and I believe that the Malta fab and GF will play a very active role in developing a sustainable talent pipeline.
Resource Conservation is Key to GF’s Sustainability Efforts April 26, 2024 By Candice CallahanPrincipal Member of the Technical Staff for Corporate Environmental, Health, and Safety and Sustainability, GlobalFoundries Even as our second annual Earth Week celebration draws to a close, GlobalFoundries remains laser-focused on identifying and implementing new ways of reducing resource use and finding efficiencies in our day-to-day operations as we manufacture the essential semiconductors the world needs. For us, every day is Earth Day. In this article, I would like to share how GF is making a difference in the key areas of water use, hazardous waste management and chemical usage. Click here to read my colleague John Compani’s article that covered our efforts to reduce greenhouse gas emissions and electricity use. Also click here to read about GF’s new long-term goals to achieve net zero greenhouse gas emissions and 100% carbon-neutral power by 2050. GF’s headquarters and manufacturing facility in Malta, New York Water Use Semiconductor manufacturing requires significant amounts of water, and GF has been making strategic investments that reduce consumption and promote the recycling and reuse of water at our facilities. These programs are working. In 2023, 39% of GF’s total water use was covered by recycled and reused water. Last year our teams around the world implemented projects that are on track to help us achieve an annual savings of more than 341,000 m³ (90 million gallons) of water – about the water used by more than 800 average U.S. households in one year1. At the end of the day, our normalized water use2 in 2023 represented a reduction of 19% from 2020. Below are a few examples of our successful projects: In Singapore, a wastewater stream from a reverse osmosis system was redirected for reclamation and reuse in the facility cooling tower and main exhaust scrubber system, resulting in savings of 219,000 m3 (58 million gallons) of water per year. In New York, the process to flush and qualify ultrafilters with ultrapure water was modified to collect the resultant wastewater for reuse, resulting in approximately 26,000 m3 (6.8 million gallons) of water savings per year. In Vermont, upgrades and preventative maintenance updates on a group of chemical-mechanical planarization manufacturing tools resulted in 32,000 m3 (8.4 million gallons) of water savings per year. Inside GF’s manufacturing facility in Essex Junction, Vermont Hazardous Waste Management and Chemical Usage GF has rigorous chemical review and pollution prevention programs across all of our worldwide manufacturing sites. Our goal is to identify opportunities to reduce or eliminate chemical use and waste generation, whether through process innovation, finding new efficiencies, or novel ways of reusing or recycling materials. In 2023, across our global sites, GF completed a range of projects resulting in the combined reduction of more than 4,600 metric tons of hazardous waste and chemical use. Together, these projects represent $4.5 million in annual savings for GF. Examples of these projects include: In Singapore, a series of solvent usage reduction efforts by optimizing recipes at our 200mm fabs resulted in a combined annual chemical savings of $74,000 per year. In New York, our team completed a project to adjust concentrations of chemicals used in the wet cleans process, which will reduce consumption by 70 tons of hydrogen peroxide and 26 tons of ammonium hydroxide per year, saving the company approximately $138,000 per year in material costs. In Vermont, our team developed a new method for reducing and optimizing the use of specific gases used as cleaning agents inside semiconductor manufacturing tools, resulting in a savings of $60,000 year. Thank you for taking the time to read and learn more about GF’s commitment to improving our resource conservation efforts, sustainable operations, and minimizing our impact on the environment. Click here for additional information. Candice Callahan is a Principal Member of the Technical Staff with GF’s Corporate EHS & Sustainability Team. She is based in Essex Junction, Vermont, with a focus on GF’s Environmental Performance, Resource Conservation and Sustainability efforts. 1 Using the U.S. Environmental Protection Agency’s estimate that the average U.S. family uses 300 gallons of water per day [link] 2 Normalized water use is how we measure efficiency for how much water it takes to manufacture our products.
GF Earth Week 2024: Protecting our Planet Together April 24, 2024 GF resource conservation projects reduce the company’s environmental impact By John CompaniSenior Member of the Technical Staff for Corporate Environmental, Health, and Safety and Sustainability, GlobalFoundries This week GlobalFoundries (GF) is celebrating our second annual Earth Week, in honor of Earth Day and our collective responsibility of being a good steward of our planet and its resources. Our theme for Earth Week is: “ONEGF, One Planet, Protect it Together.” As Dr. Thomas Caulfield, president and CEO of GF, said earlier this week when announcing our new goals of achieving net zero emissions and carbon-neutral power by 2050: “Climate change is a universal concern for every nation, company and person on this planet, and there are no do-overs when it comes to global warming. It is incumbent upon all of us to take meaningful action to fight against this risk.” GF has a longstanding commitment and proven track record of sustainable operations and minimizing our impact on the environment. Below are examples of GF’s commitment in action, across the key areas of greenhouse gas (GHG) emissions and electricity consumption. Watch for an article later this week on other key resource conservation efforts in the areas of water use, hazardous waste management and chemical usage. GF’s manufacturing facility in Dresden, Germany Greenhouse Gas Emissions Earlier this week, GF doubled down on its commitment to sustainability by announcing exciting new goals of achieving net-zero greenhouse gas (GHG) emissions and 100% carbon-neutral power by 2050. This work builds upon GF’s Journey to Zero Carbon pledge to reduce our GHG emissions by 25% from 2020 to 2030. We are on track to meet this 25% reduction goal by 2030, thanks to strong leadership and our innovative global team applying a variety of approaches and investments tailored to GF’s unique global manufacturing footprint. Our efforts are paying off, with GF emitting 27% less GHG per wafer1 in 2023 than it did in 2020. The combined reoccurring annual benefits of projects completed in 2023 alone resulted in approximately 125,000 MTCO2e of GHG reductions, that’s roughly equivalent to the emissions from driving a car around the earth 1,500 times2! Below are a few examples of the many exciting projects GF’s team completed in 2023 to help reduce our GHG emissions: In Vermont, the installation of point-of-use abatement devices on specific tools resulted in annual GHG emission reductions of 2,800 MTCO2e, and the qualification and use of alternative heat transfer fluids in some etch tools will reduce annual GHG emissions by 6,600 MTCO2e and provide approximately $60,000 per year in material savings. In New York, the qualification and use of alternative heat transfer fluids in a group of chemical vapor deposition equipment will result in approximately $185,000 in material savings and the elimination of 35,000 MTCO2e in greenhouse gas emissions per year. In Singapore, a multi-year project continued to upgrade specific tools with a more efficient chamber-cleaning process resulting in a GHG emission reduction of 78,000 MTCO2e per year. Additionally, earlier this year GF and Keppel announced a multi-year power purchase agreement to provide electricity at GF’s Singapore site. By using power from Keppel’s new advanced power plant scheduled for completion in 2026, it is expected that GF will be able to reduce emissions from its Singapore site by more than 10% – or up to 70,000 tons of CO2 emissions – per year. Click here to read more. Inside GF’s Singapore manufacturing facility Electricity Use Semiconductor manufacturing is an energy-intensive process. Not only do electricity conservation projects save money, but they can also reduce the GHG emissions generated as a byproduct of producing that electricity. In 2023, GF’s sustainability and efficiency efforts produced an annual savings of more than 23.5 million kilowatt-hours (kWh) of electricity – enough to power approximately 2,200 U.S. households for a year3. This resulted in significant savings in operational costs as well as a reduction in indirect GHG emissions associated with the purchased electricity. With the completion of power-saving projects in 2023, GF on average used 19% less electricity to produce a wafer1 than it did in 2020. Examples of these projects include: In Dresden, Germany, two additional heat exchangers were put into operation to support process chilled water systems, resulting in a savings of approximately 170,000 kWh per year and nearly 2,400,000 kWh per year in LED lighting upgrades were made to the facility. In Singapore, strategically removed heat tracing on a group of etch tools resulting in energy savings of 733,000 kWh per year. In New York, nearly 800,000 kWh in LED lighting upgrades were completed in the cleanroom, and new improvements to temperature controls for areas of the subfab and cleanroom resulted in over 554,000 kWh per year of electricity savings. Also, earlier this year, GF supply partner Air Liquide announced an investment of over 50 million euros to build a new plant in Singapore and revamp its existing facilities in Malta, New York, to supply high purity nitrogen to GF. These Air Liquide projects are expected to enable GF to benefit from higher energy efficiencies. Read more about it here. John Compani is a Senior Member of the Technical Staff with GF’s Corporate EHS & Sustainability Team. He is based in Malta, New York, with focus on GF’s Environmental Performance, Resource Conservation and Sustainability efforts. 1 “per wafer” is an approximation; the technical measurement is “per production output” which takes into consideration the size of semiconductor wafers (200mm or 300mm) and complexity of the product (number of mask layers) when calculating GHG emissions or electricity use per wafer. 2 GHG Protocol Average gasoline car emission factor 2 kg CO2e/vehicle-km [link] 3 Using the U.S. Energy Information Administration’s estimate that the average U.S. household consumes about 10,500 kilowatt-hours (kWh) of electricity per year. [link]
